Sensex and Nifty dip in Diwali trade as eight-year winning run ends

Indian equity markets started Samvat 2083 on a weak note on Sunday, November 8, 2026, as the BSE Sensex and NSE Nifty 50 ended the special Diwali Muhurat Trading session in the red. This marked the first negative close for the session since 2017, ending an eight-year winning streak. The 30-share Sensex closed 28.62 points lower at 80,999.40, while the Nifty 50 settled 6.65 points down at 25,023.70. Broader markets performed better, with the Nifty Midcap index ending 0.13% higher and the Nifty Smallcap index gaining 1%.

Market Movers

Sun Pharma, Tata Steel, Maruti Suzuki, Power Grid and Adani Ports were the biggest gainers among Sensex constituents. Mahindra & Mahindra, IndiGo, Trent, Infosys and Bharti Airtel faced the steepest losses. During the previous year, Samvat 2082, the Sensex had declined 3,398.32 points or 4%, and the Nifty fell 838.25 points or 3.24%. In the 2025 Muhurat session, the Sensex had gained 63 points to close at 84,426, and the Nifty 50 advanced 25 points to settle at 25,868.

Pressures

Global tensions, rising crude oil prices, and foreign investor outflows weighed heavily on equities. The escalating conflict in the Middle East, including military tensions between the US and Iran and threats around the Strait of Hormuz, kept global markets on edge. Brent crude crossed the $100-per-barrel mark, surging to a peak of $138.21 on April 7, 2026, after beginning the year around $61. India imports more than 80% of its crude oil requirements. Foreign institutional investors sold approximately ₹ 4 lakh crore, or $42-45 billion, worth of Indian equities in 2026, marking the sixth straight year of net outflows. Rising US Treasury yields and a weaker rupee added to the pressure, with the rupee hitting an all-time low of 97.12 on May 20, 2026, before trading near 94.04 in early November.

Outlook

Avinash Agarwal, Senior Vice President and Head of Equity at Bandhan Life, said the market outlook remained constructive, but returns would likely be moderate and selective. Agarwal noted that earnings growth would drive future performance, and expects large- and midcap segments to do well when foreign investors return.

Context

Muhurat Trading is a special symbolic market session held during Diwali to mark the start of the Hindu calendar year, with tradition linking it to future financial prosperity. India's heavy reliance on imported crude oil means that global oil price spikes directly impact domestic inflation, trade deficits, and corporate profit margins across multiple sectors.